Poland: Manufacturing sector contracts at a softer pace in April
The manufacturing Purchasing Managers’ Index (PMI), released by IHS Markit, increased to 49.0 points in April (March: 48.7 points). The index thus moved closer to the 50-point threshold that separates contraction from expansion in the manufacturing sector; it has been below the critical mark since November 2018.
April’s reading reflected softer falls in output and new orders, which nevertheless continued to be weighed down by protracted weakness in external demand—with exports contracting at one of the fastest rates in the last 10 years. That said, domestic demand showed resilience, and the decline in production was the softest since last November. However, inventories continued to pile up, and backlogs of work fell again, despite the sharpest fall in employment in over six years. Moreover, firms’ production outlook weakened. Lastly, while input inflation was strong, output prices rose at the slowest pace in over two years, due to intensifying competitive pressures.
Commenting on the release, Trevor Balchin, Director at IHS Markit, added:
“The downturn in the Polish manufacturing sector showed further signs of easing in April as the PMI improved to a five-month high. That said, underlying survey data suggest that conditions may continue to deteriorate moving through the second quarter.”